q1formA

q1formA - Name form A Econ 1 First midterm October, 2007 We...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name form A Econ 1 First midterm October, 2007 We will award 5 points for doing the following correctly. FILL IN THE BUBBLES on your scantron for your name , your perm number , and the test form type . Use pencil only . All bubbles must be completely filled in. Each correct answer is worth 5 points. Answers left blank are worth 2 points. Wrong answers are worth 0 points. True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. A competitive equilibrium price is defined to be a price at which buyers and sellers make equal profits. 2. Consumer’s surplus is the difference between the number of units of a good demanded and the number of units supplied. 3. Suppose that the supply curve for lettuce is vertical, the demand curve is downward-sloping, and the demand curve intersects the supply curve at a positive price. If the demand curve shifts up and the supply curve does not change, the equilibrium price of lettuce will rise and the equilibrium quantity of lettuce sold will not change. 4. The fact that fresh raspberries are both cheaper and more plentiful in the summer than in the winter is best explained by a shift in the demand curve. 5. If the demand curve slopes down and the supply curve slopes up, then when the demand curve shifts, the equilibrium price and quantity move in the same direction. 6. If the price elasticity of demand is E, then the price elasticity of supply is defined to be - 1 /E . 7. Suppose that the demand curve is downward-sloping and the supply curve is a horizontal line. If a sales tax of $10 per unit is collected from sellers for each unit they sell, the effect of the tax will be to increase the price by $10 per unit and to reduce the number of units sold.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Econ 1 2 8. If the demand curve slopes downwards and the supply curve slopes upwards, the total reduc- tion in profits and consumers’ surplus caused by a sales tax of $20 per unit will exceed the amount of revenue collected by the tax. Multiple Choice Questions
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/12/2008 for the course ECON 1 taught by Professor Bergstrom during the Spring '07 term at UCSB.

Page1 / 5

q1formA - Name form A Econ 1 First midterm October, 2007 We...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online